Piper Sandler analyst Matt O’Brien says during his bus trip, NuVasive management team indicated that the environment for spine surgeries remains “choppy” and indicated that upside to numbers in the near term likely does not exist. The comments are leading to a meaningful pullback in the stock, O’Brien tells investors in a research note. Shares of NuVasive are down 5% to $46.41 in afternoon trading. The analyst points out that the comments were made in the context of how well the business is doing in areas it can control and that when the market recovers, it should be positioned to deliver strong results. O’Brien does not expect NuVasive to miss Q3 expectations but says the macro environment is taking away the upside that management wanted to deliver. Consequently, he believes the share selloff today is overdone and ithat nvestors should take advantage of the weakness to buy the stock. He reiterates an Overweight rating on the shares with a $60 price target.
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